Citigroup Ups Apple to Buy

Apple(AAPL Quote) is being hamstrung by product transitions, but should start beating earnings estimates again later this year, Citigroup said in upgrading the stock to buy from hold Monday.

The brokerage maintained its 12-month price target of $82. Apple closed Friday at $63.19, down 12% since the start of the year. The current price is 29.5 times the Thomson First Call earnings estimate of $2.14 a share for the 12 months ending this September.

Citi expects Apple to complete its transition to Intel(INTC Quote)-based microprocessors in August with the introduction of a new, dual-core PowerMac, with Intel-based iBooks coming as early as April. The brokerage also expects Apple to release a new video iPod in April. ...